Texas Gas Transmission, LLC
Third Revised Volume No. 1
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Effective Date: 09/15/2008, Docket: RP08-392-003, Status: Superseded
Substitute Original Sheet No. 2203 Substitute Original Sheet No. 2203
GENERAL TERMS AND CONDITIONS
The deadline for bids for capacity posted pursuant to the exercise of a
right-of-first refusal will be specified in the posting; however, bids
will be due no less than 30 days after posting and no more than 60 days
(d) Content of Bids
Bids must be submitted in writing or on the Internet Website to Pipeline.
Bids must contain all information necessary for a complete request for
service pursuant to the particular rate schedule under which service is
desired by the bidder, including price bid, quantity, and term desired.
Pipeline may reject all bids which would require it to discount below a
rate and discount term agreeable to Pipeline.
10.5 Selection of "Best Bid" for ROFR and Notice to Current Capacity Holder
(a) At the close of the bidding period, Pipeline will choose the "best bid,"
based upon what will yield to the Pipeline the highest net present value,
using a 10 percent discount factor, of the reservation charge (reservation
charge X CD), the bidder is willing to pay through the term bid. If
several bids yield the same net present value, the bid which yields to the
Pipeline the highest net present value over the shortest period of time
will be considered the best bid. After this process, if there are still
several bids which yield the same net present value, then the "best bid"
will be the bid submitted first in time.
(b) The terms of the "best bid" will be communicated in writing by Pipeline to
the Customer currently holding the capacity. The Customer currently
holding capacity will have 30 days to match the "best bid." Competing
bids must be matched by the Customer currently holding the capacity, even
if the bid is for less than the total capacity available under the
applicable service agreement. Competing bids must be matched up to the
maximum rate applicable to the service currently being provided under the
subject service agreement, for the term bid by the "best bidder." When SGT
or SGL Customers are required to match the "best bid," bids which contain
a reservation charge will be converted to a comparable one-part volumetric
(c) For any Customer submitting a bid or matching a "best bid," who agrees to
pay the maximum rate, the rate that will be paid by that customer will be
the maximum rate as it may exist from time to time during such term as
agreed to by Customer.